Sales increased to SEK 1,434m (1,138), corresponding to an organic growth of 14 percent, largely driven by the price increases introduced to mitigate the increased costs within the supply chain. Sales in the quarter are the highest since the split of the Group in 2011.
The gross margin amounted to 28.5 percent (27.5). Compared to the first quarter 2022, the gross margin increased by 0.8 percentage points.
Adjusted operating profit amounted to SEK 118m (82), corresponding to an adjusted operating margin of 8.2 percent (7.2).
The reported operating profit amounted to SEK 100m (79), which corresponds to a margin of 6.9 percent (6.9). Items affecting comparability of net SEK -18m (-3) affected earnings.
Earnings per share, basic and diluted, amounted to SEK 1.07 (1.11).
Cash flow from operating activities amounted to SEK -63m (19).
Haldex has entered into a multi-year agreement with Schmitz Cargobull, the leading trailer manufacturer in Europe, for the delivery of Haldex air disc brakes. Deliveries are expected to begin in the third quarter 2023.
Haldex has refinanced its debt with until April 2024. See page 5.
SAF-HOLLAND has made a public cash offer to Haldex's shareholders to transfer their shares in Haldex to SAF-HOLLAND. SAF-HOLLAND is offering SEK 66 per Haldex share in cash, which values the issued share capital of Haldex at approximately SEK 3.2 billion. The Board has unanimously recommended that Haldex's shareholders accept the Offer.
The challenges within the supply chain has eased somewhat although the situation is still strained due to increased raw material and shipping costs as well as component and semiconductor shortages.
EVENTS AFTER THE END OF THE QUARTER
A new Executive Vice President APAC and member of Group Management has been appointed.
Comment from Jean-Luc Desire, President & CEO
Net sales in the second quarter amounted to SEK 1,434m (1,138), equivalent to an organic growth of 14 percent, which is the highest since the split of the Group in 2011. We achieved sales growth in across all customer segments in all three regions. Region Americas and region EMEA reported an organic growth of 21 and 6 percent respectively, largely driven by the price increases introduced to handle the increased costs in the supply chain. I am particularly pleased that region APAC achieved an organic growth of 12 percent and successfully increased sales despite the continued market downturn in China and the logistics challenges following Covid-19 outbreaks in the country. The Aftermarket segment had an organic growth of 19 percent while both the Trailer and Truck segments grew 9 percent organically. According to our assessment of external market data, we are taking market share in the quarter on a global basis. Compared with the previous quarter, net sales increased by 13 percent.
The adjusted operating profit amounted to SEK 118m (82), corresponding to margin of 8.2 percent (7.2) in the second quarter. This shows that we have been successful in raising prices to mitigate the increased costs for raw materials, semiconductors and freight. Compared with the first quarter 2022, the adjusted operating margin increased by 1.9 percentage points. Ongoing management of pricing towards customers compared to increases in supplier costs will remain a key focus going forward. The reported operating margin amounted to 6.9 percent (6.9). Increased accounts receivables as a result of the increased sales together with a reduction in accounts payables tied up working capital which led to a negative cash flow. The cash flow from operating activities in the second quarter amounted to SEK -63m (19).
I am proud of Haldex's extended partnership with Schmitz Cargobull, the leading trailer manufacturer in Europe. During the quarter, we entered into an agreement with Schmitz Cargobull for the supply of Haldex disc brakes. The deal is an important milestone to continue to grow in this segment, and further strengthens Haldex already strong market position for air disc brakes for trailers in Europe. Together with the deal that was signed with KRONE Commercial Vehicle Group for delivery of the next generation electronic braking system during the first quarter, and which now is in commercial production, Haldex has taken great steps to be a significant supplier to trailer customers in the EMEA region.
In June, SAF-HOLLAND announced a public cash offer to the shareholders in Haldex to purchase their shares in Haldex for a cash value of SEK 66 per share. The Board of Directors has unanimously recommended the shareholders to accept the offer. For Haldex, this offer has no impact on our operations. Our business continues as usual, and we continue to focus on delivering best-in-class solutions to our customers.
Our strategically important development projects for the Electromechanical brake (EMB) together with market leading Truck OEMs continues. Haldex remains committed to the vision and strategy that was launched at the end of 2021 with a focus on electrification and digitalization. In light of this I am pleased to announce that we have signed an agreement for a prototype of the Electromechanical brake (EMB) with one of the new leading innovative companies. While it is still in the early phases, we believe that partnering with companies with start-up characteristics, that are fully focused on electrification, is the way to go forward for the launch of the EMB. This start-up mindset provides opportunities for new business models. To meet these customers' business model and expectations of 'time-to-market', we have internally formed a cross-functional team with a focus on EMB. Our global team will going forward have the core of the development for the EMB based in Sweden.
As we mentioned last quarter, we carry on with our efforts to improve our operational efficiency and product profitability. As a step in this, we have consolidated parts of our production sites in Asia. We will continue to take steps as needed.
To adapt to the changes in our organization and alignment with our strategy, we have strengthened our behavior model which guides us in our daily work and operations. The world, our industry and our markets are changing, and we continuously need to adapt to stay successful and achieve the targeted results - both as a company and as individuals. Building our global matrix organization requires a new culture and mindset with accountability on all levels, active interactions and strengthened collaboration. Additionally, we want to share and celebrate our successes. Our new 4C Behaviors are Challenge, Collaborate, Commit & Deliver and Celebrate. By adapting our behaviors, we can better achieve our strategic goals.
In summary, the second quarter 2022 was a strong quarter for Haldex with several milestones reached, despite the continued impact of the challenges in the supply chain. We see that the lack of access to raw materials and components are easing, however increasing costs and energy prices will continue to impact us going forward. We monitor the market developments closely and are taking mitigating actions as necessary.
Contact:
Jean-Luc Desire
President & CEO
Lottie Saks
CFO
Jenny Bostrom
Investor Relations Manager
E-mail: ir@haldex.com
Phone: +46 418 47 60 00
About Haldex
Over 100 years of powerful innovation gives Haldex unsurpassed expertise when it comes to braking systems and air suspension systems for heavy trucks, trailers and buses. We live and breathe our business with the goal to deliver robust and technically superior solutions which is founded in a deep insight in our customer's reality. Through focusing on our core competences and the passion we all share, we achieve the agility and flexibility that the market demands. Innovative collaborations aren't only the core of our products, but our philosophy. Our 2 000 employees, spread out across four continents, challenge the conventional on a daily basis in order to secure that the products we deliver create a unique value to our customers and the end users. We are listed on Nasdaq Stockholm and have a turnover of approx. 4.6 billion SEK.
HALDEX AB (PUBL) 
